CRYPTO Market Cap Changes Understanding and Analysis
The cryptocurrency world has been on the roller coaster since its foundation. With the increase in Bitcoin, Ethereum and others Altcoins, the landscape has become increasingly complex, making it difficult for investors to understand market trends. One critical aspect that influences the productivity and value of this property is the capitalization of their market (the upper limit of the market).
Market capitalization refers to the total value of cryptocurrency or token measured by its outstanding number of coins or tokens. This reflects the total value of all parts of the blockchain network, including supply, demand and operations. From 2023 March The top 10 cryptocurrencies according to market boundaries are:
- Bitcoin (BTC) – Market’s upper limit: over $ 430 billion
- Ethereum (ETH) – Market’s upper limit: over $ 230 billion
- Binance Coin (BNB) – Market Top Boundary: About $ 90 Billion
- Cardano (ADA) – Market’s upper limit: approximately $ 24 billion
- Tethered (USDT) – Market upper limit: about $ 30 billion
- USDC – Market Top Bound: approximately $ 25 billion
- SOLANA (SOL) – Market’s upper limit: about $ 18 billion
- Polkadot (DOT) – Market’s upper limit: about $ 14 billion
- Ripple (XRP) – Market Top Bound
- Dogecoin (Doge) – Market Top Bound: approximately $ 5 billion
In this article, we will delve deeper from the analysis of the ceiling of the cryptocurrency market and provide insights on how to do it effectively.
Why analyze changes in the top boundary of the market?
Changes in the upper boundary of the market can have a major impact on the value and performance of various cryptocurrencies. For example:
1
- Acceptance and use : Increased acceptance and use of a particular cryptocurrency can lead to a higher market value.
- Innovation and updates : New features or updates on the cryptocurrency network can attract investors, resulting in an increase in supply and subsequently the higher market.
How to Analyze the Top Bounds of the Market
To effectively analyze the changes in the upper limit of the market, consider the following steps:
1
2.
* General supply
* Maximum supply
* Circulation supply
* Spending out of chips (if applicable)
3.
- Observe the news and events : Be updated with the relevant news, updates and messages that can affect the upper limit of the cryptocurrency market.
Example: Changes in the Bitcoin market’s upper limit
Let’s analyze the 30 -day period to show how to apply the following:
Suppose we are watching the top limit of the Bitcoin (BTC) market in the last month. We decide to focus on the 30 -day period and the metrics we choose are:
- General supply
- Maximum supply
We find that Bitcoin has increased its total supply from about 21 million January. To about 25 million in late February.
| Day | BTC Price | General supply |
| — | — | — |
| January 1, $ 31 $ 100 | 21 million |
| February 28 $ 31,200 | 23 million (4.8%increased) |
We calculate the capitalization of Bitcoin market as follows:
- General supply: $ 25 million
- Maximum supply: Suppose it does not change $ 21 million.
Market capitalization = total supply / maximum supply ≈ 1.173 BTC
At the same time, Ethereum increased its total supply from about 75 million in January. To about 85 million in late February.
| Day | ETH Price | General supply |
| — | — | — |
| January 1, $ 3,200 | 75 million |
| February 28, 2,300 | 80 million (increased by 5.